Birmingham City Council faces big issues on Tuesday - WBRC FOX6 News - Birmingham, AL

Birmingham City Council faces big issues on Tuesday

BIRMINGHAM, AL (WBRC) -

The Birmingham City Council is expected to tackle some big issues on Tuesday.

A ban on new pay day loan stores coming to Birmingham is set to expire in just a few weeks and some are concerned more will pop up if the city does not take action.

Quinn Rallins invited leaders from all congregations to a special meeting yesterday. Rallins is the Director of Faith in Action, who believes the businesses are misleading and prey on the financially vulnerable.

Reverend Deforest Soaries spoke at the meeting. He travels around the country discussing problems surrounding the businesses.

"The advertising and promotion makes it sound so easy and helpful, but what it doesn't disclose is the high rates (and) people who get caught in the trap. It doesn't disclose the penalties and fees people have to pay when they can't pay back the loan in two weeks," said Soaries.

Reverend Soaries says in Alabama, the average interest rate is 456%. He says if someone takes out a loan for $300, they could end up having to pay back $800.

The city of Birmingham is still trying to figure out what to do about payday lenders.

Birmingham city leaders could soon make a decision surrounding Mike's Crossroads, an adult club in the city's west side.

On Tuesday, council members will hold a hearing to decide if it will pull the club's business license. Some of the club's neighbors and city councilors have called the club a safety hazard after several recent shootings in and around the property.

The owner of Mike's Crossroads says his business is being unfairly blamed for things that happened on his property while the club was closed or had nothing to do with his business.

Council members will also decide if they will hold a public hearing about the booting and towing of cars in the city limits.

At tomorrow's council meeting, they will decide whether to hold a public hearing to look at a new law on the issue. The public hearing would be held September 18th, if approved.

This follows a story we first reported back in July. People in the Five Points South area were complaining about a towing company being overly aggressive when it came to towing cars and the exorbitant fees they charged for getting them back.

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